Don't Ignore This Chart!The Don't Ignore This Chart blog contains daily articles with intriguing or unusual charts selected by one of our Senior Technical Analysts, along with a short explanation of what exactly caught their attention and why they believe the chart is worth noting.tag:stockcharts.com,2019-04-18:blog-272019-09-13T16:46:08ZBending Aluminum - Alcoa TurnsGreg Schnelltag:stockcharts.com,2019-09-13:post-179842019-09-13T16:46:08ZAlcoa (AA) is one of the beaten-down names in the commodity space. With the XLI breaking out to new highs this week, all of the industrial metal stocks look set to run, and Alcoa could be one of the gems that makes a big move...Alcoa (AA) is one of the beaten-down names in the commodity space. With the XLI breaking out to new highs this week, all of the industrial metal stocks look set to run, and Alcoa could be one of the gems that makes a big move. Commodity-related stocks go from horrible to wonderful and we can look at them as they make the turn.Here's the daily view in launching:The weekly view gives us some perspective on how far this could move if China trade improves.So lots of room to the upside! Again, as the XLI breaks out, copper, steel, aluminum and rare-earth metals can all run.I do want to point...LRCX is Breaking To New Highs While Relative Strength is Picking UpJulius de Kempenaertag:stockcharts.com,2019-09-12:post-179762019-09-12T13:57:35ZOn the Relative Rotation Graph for technology stocks, LRCX stands out, with its relatively long tail and its push into the leading quadrant at a strong RRG-Heading. Such a rotation is more than enough reason to open up a regular chart for further investigation...On the Relative Rotation Graph for technology stocks, LRCX stands out, with its relatively long tail and its push into the leading quadrant at a strong RRG-Heading. Such a rotation is more than enough reason to open up a regular chart for further investigation.The chart above shows LRCX on a weekly scale with relative strength and the RRG-Lines. The number one clue signaling further upside for LRCX is the break to new highs. Last week's jump closed 20 cents above the March high at $227.70 (short dashes) and solidly above the (IMHO) more reliable resistance level just below $220 (long...Can JPM Hit 52-Week Highs This Week?Greg Schnelltag:stockcharts.com,2019-09-10:post-179622019-09-10T22:40:50ZRemember the slaughter in financials on the back of low yields? Well, with the bonds reversing, all the banks are now taking a big run up. J.P. Morgan, the guy, would be happy to see his stock so resilient in the face of declining interest rates. The current guy running J.P...Remember the slaughter in financials on the back of low yields? Well, with the bonds reversing, all the banks are now taking a big run up. J.P. Morgan, the guy, would be happy to see his stock so resilient in the face of declining interest rates. The current guy running J.P. Morgan (JPM), Jamie Dimon, is probably equally impressed. If we are going to start seeing more easing and stimulus from the central banks, this could really move. The SCTR for JPM is still in the middle of the range. It would be nice to see JPM seriously outperform and move above the 75% level. The relative strength...Scanning For Stocks With Strong Technicals AND Strong FundamentalsTom Bowleytag:stockcharts.com,2019-09-08:post-179502019-09-08T13:56:16ZI maintain a "Strong Earnings ChartList", where I organize those companies who (1) beat Wall Street consensus estimates as to both revenues and earnings per share (EPS), (2) have adequate liquidity (generally trade more than 200,000 shares daily), and (3) have shown solid technic...I maintain a "Strong Earnings ChartList", where I organize those companies who (1) beat Wall Street consensus estimates as to both revenues and earnings per share (EPS), (2) have adequate liquidity (generally trade more than 200,000 shares daily), and (3) have shown solid technical price action. The number of stocks on this list varies, depending on where we are in earnings season and how many companies are able to beat estimates. Currently, I have 329 companies in this ChartList, the most I've ever had. I believe that's a function of our economy being much stronger than is reported. Also...Twitter Leaves the Consolidation TreeGreg Schnelltag:stockcharts.com,2019-09-06:post-179442019-09-06T21:29:11ZTwitter has been in the news for all kinds of reasons; from controlling foreign influence to blocking political party messages, the company seems to have all kinds of public relations issues...Twitter has been in the news for all kinds of reasons; from controlling foreign influence to blocking political party messages, the company seems to have all kinds of public relations issues. Twitter is one of the most powerful tools in the world for politicians, as the ability to communicate directly without the filters of the press corps - for free - is of extreme value. Worldwide, the platform has become a direct communication medium and everyone who is on Twitter uses it to receive the news.This week, the price of the stock made its own news. Twitter (TWTR) broke out to new 52-week...Is This Stock Ready For a Turnaround - or Just a Quick Bounce?Julius de Kempenaertag:stockcharts.com,2019-09-05:post-179312019-09-05T13:45:59ZThe Relative Rotation Graph (RRG) above is the result of a scan that I am running from time to time. Before you ask... ;) in an upcoming RRG Charts blog, I will explain how I got to this selection of stocks, including the scan-code...The Relative Rotation Graph (RRG) above is the result of a scan that I am running from time to time. Before you ask... ;) in an upcoming RRG Charts blog, I will explain how I got to this selection of stocks, including the scan-code.For now, let's concentrate on the RRG and the stocks that are on display, especially the one that I have highlighted in the chart above: that long tail traveling northeast inside the improving quadrant belongs to ALGN, Align Technologies Inc.As ALGN is a daily RRG, I am going to look at a daily chart to further investigate the stock.Clearly, this is a very weak...A Dynamic Stock?Greg Schnelltag:stockcharts.com,2019-08-30:post-179082019-08-30T19:13:53ZOne of the industry groups that hit a new high this month was the Aerospace and Defence industry group ($DJUSAE). That chart looks beautiful. Looking through the charts in that industry group, Northrop Grumman (NOC) has been roaring higher...One of the industry groups that hit a new high this month was the Aerospace and Defence industry group ($DJUSAE). That chart looks beautiful.Looking through the charts in that industry group, Northrop Grumman (NOC) has been roaring higher. But another chart setting up nicely right now is General Dynamics (GD). The chart made new 2019 highs this week! The SCTR is trying to get up into the top 25%, showing strength compared to the other big performers in the large-cap space. The relative strength to the S&amp;P 500 broke the down trend in late July. The stock wobbled in August, but now looks...A (pair) Trade Idea in Consumer DiscretionaryJulius de Kempenaertag:stockcharts.com,2019-08-29:post-178992019-08-29T13:43:52ZLooking at the daily Relative Rotation Graph for US sectors, we can see that Consumer Discretionary is inside the improving quadrant and about to cross over into leading at a strong RRG-Heading. For the near-term, this makes XLY a sector to keep an eye on...Looking at the daily Relative Rotation Graph for US sectors, we can see that Consumer Discretionary is inside the improving quadrant and about to cross over into leading at a strong RRG-Heading. For the near-term, this makes XLY a sector to keep an eye on.In order to look for some trade ideas, I ran the RRG for the members of the Discretionary sector against XLY. I started at the weekly RRG for this universe in an attempt to look for some meaningful trends that may be underway, then switched to the daily version to double-check. I noticed two interesting rotations.The above chart holds all...Costco Crazy!Greg Schnelltag:stockcharts.com,2019-08-28:post-178922019-08-28T01:02:25ZCostco (COST) continues to outpace most of the retail space with strong price action. While Tuesday was a weaker market overall, Costco, by contrast, was able to cleanly break above a small area of resistance...Costco (COST) continues to outpace most of the retail space with strong price action. While Tuesday was a weaker market overall, Costco, by contrast, was able to cleanly break above a small area of resistance. Costco also soared on three times the volume, which is what we like to see as the stock moves up. The weekly chart looks just as good. I do have trouble buying, though, with the PPO way up at the highest level in 5 years. So the real question is: "Can a person add to Costco here?". I would suggest that the prudent thing to do is wait for a little pullback and, subsequently, set your...A Stable Stock in an Unstable MarketArthur Hilltag:stockcharts.com,2019-08-26:post-178872019-08-26T16:15:36ZThe pickings are getting slim as the broader market destabilizes. The S&P 500 and Nasdaq 100 remain above their 200-day SMAs, but the S&P Mid-Cap 400 and Russell 2000 are below these key moving averages...The pickings are getting slim as the broader market destabilizes. The S&amp;P 500 and Nasdaq 100 remain above their 200-day SMAs, but the S&amp;P Mid-Cap 400 and Russell 2000 are below these key moving averages. The Consumer Discretionary SPDR (_XLY), Communication Services SPDR (_XLC) and Consumer Discretionary SPDR (_XLY) are above their 200-day SMAs, but the Industrials SPDR (_XLI), Financials SPDR (_XLF) and Health Care SPDR (_XLV) slipped below these key moving averages. Note that I am referring to unadjusted prices for these moving average signals. Simply precede the symbol with an...Copper Pipe Is Failing - Don't Get Flooded!Greg Schnelltag:stockcharts.com,2019-08-25:post-178842019-08-25T19:17:21ZCopper continues to be an indicator of global macro trends. Like a bad movie, the plot keeps getting worse. Below is a chart of the big miners going back to November 2018. There's no magic reason for selecting that date other than it was 200 days ago...Copper continues to be an indicator of global macro trends. Like a bad movie, the plot keeps getting worse. Below is a chart of the big miners going back to November 2018. There's no magic reason for selecting that date other than it was 200 days ago. Notice how the Australian companies (BHP and RIO) have dropped recently, pulling back as to be nearly unchanged, but the other three are getting taken out to the woodshed.These charts could get a V-bottom on a trade deal, but that doesn't appear to be in the charts yet. Stay cautious on the industrial metals-related trades.Here Is a Leading Stock In The Semiconductor GroupJulius de Kempenaertag:stockcharts.com,2019-08-22:post-178652019-08-22T12:08:20ZYesterday, I wrote about the Technology sector in my RRG Charts blog, where I discussed how the semiconductor stocks as a group showed relative strength against XLK. For this DITC article, I want to work off that subset of stocks in the technology space...Yesterday, I wrote about the Technology sector in my RRG Charts blog, where I discussed how the semiconductor stocks as a group showed relative strength against XLK. For this DITC article, I want to work off that subset of stocks in the technology space.The Relative Rotation Graph above shows all semiconductor stocks in the Technology sector against the benchmark XLK. I have highlighted Texas Instruments (TXN) for further investigation.The main reasons why I picked TXN over any of the others were:It has just entered the leading quadrant and is still at low JdK RS-Ratio and JdK RS-Momentum...Mirror, Mirror on the Wall, What's the Strongest Industry Group ETF of All?Arthur Hilltag:stockcharts.com,2019-08-21:post-178582019-08-21T11:41:20ZTaking a top-down approach to the stock market, we can break down the major indexes into sectors, the sectors into industry groups and the industry groups into individual stocks. There are eleven sector SPDRs and three clear leaders...Taking a top-down approach to the stock market, we can break down the major indexes into sectors, the sectors into industry groups and the industry groups into individual stocks. There are eleven sector SPDRs and three clear leaders. The Utilities SPDR (XLU) and Real Estate SPDR (XLRE) hit new highs this week, while the Consumer Staples SPDR (XLP) came very close to its July high. Admittedly, there is some debate on classifying utilities and REITs as sectors because they are relatively small (3.24% to 3.45% of the S&amp;P 500) and homogeneous (source: SPDRs.com). There are dozens of...Are You Pinning Your Hopes On This Stock?Greg Schnelltag:stockcharts.com,2019-08-20:post-178572019-08-20T20:13:12ZOne thing about a wild ride in the indexes - it makes the breakout names so much more difficult to trade expecting followthrough. This week, one of the high-profile IPO names is breaking out to fresh highs. A close on Tuesday above $34.42 would make it the highest close...One thing about a wild ride in the indexes - it makes the breakout names so much more difficult to trade expecting followthrough. This week, one of the high-profile IPO names is breaking out to fresh highs. A close on Tuesday above $34.42 would make it the highest close.Through all of the market volatility that has ensued since August 1, Pinterest (PINS) has traded in a tight range and looks set to break out above the prior highs. The bar chart obscures where the highest close is, but you can use a line chart to define that change. With a nice base built after the IPO, Pinterest looks like...A Breakout for this Healthcare/Technology HybridArthur Hilltag:stockcharts.com,2019-08-19:post-178522019-08-19T16:21:21ZSome stocks fit nicely into sectors and industry groups. And some don't. Cerner (CERN) is part of the Health Care SPDR (XLV), but it is really a technology stock that serves the healthcare industry...Some stocks fit nicely into sectors and industry groups. And some don't. Cerner (CERN) is part of the Health Care SPDR (XLV), but it is really a technology stock that serves the healthcare industry. Namely, Cerner provides information technology solutions for the healthcare industry. More importantly, the price chart looks constructive as the stock reverses a short-term pullback to signal a continuation of the long-term uptrend. First and foremost, the long-term trend is up. The chart shows Cerner with a big island reversal from November to March and a breakout in April. The stock broke...Chinese Stocks Start Setting UpGreg Schnelltag:stockcharts.com,2019-08-16:post-178382019-08-16T19:59:32ZIt has been 1.5 years since the tariff discussion started and the US market is broadly flat. While looking around for clues as to what to do next, I noticed some of the stocks in the Chinese large cap growth names are setting up for a potential breakout...It has been 1.5 years since the tariff discussion started and the US market is broadly flat. While looking around for clues as to what to do next, I noticed some of the stocks in the Chinese large cap growth names are setting up for a potential breakout.Alibaba (BABA) has been grinding sideways for the past 1.5 years. This week, BABA surged almost 10% on a bounce off the uptrend line. This was happening all while we had one of the most volatile weeks of the year. For me, it is a setup worth watching. The SCTR ranking is trying to move in the top quartile, which would be very bullish. The...Financials Are Breaking (more) Support While Rotating Into the Lagging Quadrant On The RRGJulius de Kempenaertag:stockcharts.com,2019-08-15:post-178242019-08-15T11:42:09ZOn the Relative Rotation Graph for US sectors, the tail on XLF, the Financials sector, caught my eye this morning...On the Relative Rotation Graph for US sectors, the tail on XLF, the Financials sector, caught my eye this morning. After a short stint through the leading quadrant, XLF had a sharp turn lower and entered the weakening quadrant, in which it spent only three days before rotating into lagging.RRG-VelocityThis RRG, or the tail for XLF on this RRG, is a good example of how RRG-Velocity works. RRG-Velocity is the distance between the observations on the tail. While moving into the leading quadrant 16 days ago, the velocity was low. Low velocity means "easier turns." Compare it to driving a car -...A Bearish Continuation Pattern Takes Shape in IWMArthur Hilltag:stockcharts.com,2019-08-14:post-178172019-08-14T13:02:28ZThe Russell 2000 iShares (IWM) has been underperforming for some time now and remains the weakest of the major index ETFs. The chart below shows IWM forming a lower high from May to July and a lower low from March to May...The Russell 2000 iShares (IWM) has been underperforming for some time now and remains the weakest of the major index ETFs. The chart below shows IWM forming a lower high from May to July and a lower low from March to May. Adding a couple of trend lines to these peaks and troughs, we can see a clear downtrend or falling channel since April. More recently, IWM reversed its upswing with a sharp decline and breakdown in early August low.The indicator window shows price performance for SPY and IWM over the past year. Notice that SPY is up 5.76% since mid August 2018 and IWM is down 8.67%...19 Banks Losing Investor SupportGreg Schnelltag:stockcharts.com,2019-08-13:post-178142019-08-13T21:26:59ZOn yet another day where a tweet sends the market across a 600-point range in seconds, figuring out the true compass direction is difficult...On yet another day where a tweet sends the market across a 600-point range in seconds, figuring out the true compass direction is difficult. I will suggest that the steady erosion of the bank charts in this article puts the problem in the eyes of central bankers and the discussions around the coffee machine.I worked through my bank ChartList this morning only to notice how many banks have gone below - or are threatening to take out - 5-year lows here in August. That low would be below the December 26th, 2018 low and the January 2016 low. Yeah, crazy low! The stock market was up 30% off the...This Biotech Kept its Head while Others Lost TheirsArthur Hilltag:stockcharts.com,2019-08-12:post-178072019-08-12T12:38:30ZIf you can keep your head when all about you are losing theirs ....Rudyard Kipling The line above comes from the Poem, "If" by Rudyard Kipling. We can rephrase this when looking at stocks over the last few weeks...If you can keep your head when all about you are losing theirs ....Rudyard KiplingThe line above comes from the Poem, "If" by Rudyard Kipling. We can rephrase this when looking at stocks over the last few weeks. If a stock can hold above the late July low and break out when others are breaking down ... Arthur HillThe late July low and high serve as benchmark levels that chartists can use to compare chart performance. The first chart shows the S&amp;P 500 SPDR (SPY), Health Care SPDR (XLV), Biotech SPDR (XBI) and Amgen (AMGN). SPY, XLV and XBI moved sharply lower in early August (blue...